2011 has begun and so has the Iowa City / Coralville Skogman Commercial office. Let’s take a look and see how both fare. I track the average home sales price, the price increase and the list price / sales price ratio as an indicator for the overall health of the Iowa City / Coralville real estate market. In the 29 years I have been tracking this indicator, there has never been as large a decrease as there was in 2010. The average home sales price was $177,310 in 2010, a 3.4% drop from the previous year. Since 2007 the average price has gone down a total of 4.3%. This is no doubt the result of an overheated marked fueled by a feeling of prosperity combined with low interest rates resulting in higher than normal prices. On the attached graph you can see this from 2002 through 2007, and then price declines starting in 2008. Does this indicate a problem for the future of the residential market value? No, it is merely a much needed adjustment so this market can get back on track in a predictable, steady manner. Note that the number of residential sales is 2,599, just shy of the 2,643 sold in 2005 – a banner year!
Now what’s going on with the new Skogman Commercial office in Coralville? We opened just at the end of November 2010, in the 3rd floor suite at 2530 Corridor Way and have changed the commercial real estate landscape in the Iowa City / Coralville market. Red Skogman Commercial Realty signs have been popping up all over Iowa City, Coralville, and North Liberty. Out of the 399 commercial and multi-family listings on the market, 110 are Skogman Commercial Group listings giving the office a 28% market share out of the gate! It’s too early in the year to look at conversions to sales and leases, but we’ll keep track and will let you know how we’re doing. We anticipate keeping a 25% – 29% market share but we’ll let you know.
Visit http://www.skogmancommercial.com/ to see the news and listings!